Maryland Allonge
Description
How to fill out Allonge?
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FAQ
In order for the allonge to have legal enforceability, any new endorser must inscribe and sign their endorsement onto the allonge.
Since endorsements do not exist for eNotes, allonges are not applicable to eNotes. For paper Notes, an allonge must be physically attached to the paper Note. So, an allonge on a paper Note cannot be electronically signed.
A document attached to a promissory note or other negotiable instrument containing an indorsement that transfers the note or negotiable instrument over to a third party or bearer. The allonge must be firmly affixed to the note. An allonge is typically delivered to a successor lender when a loan is assigned.
?Allonge? means any Shared Appreciation Allonge executed by the Borrower as more fully described in Paragraph 12 below. ?Borrower? means each person signing at the end of this Note. The term does not include his or her successors or assigns.
An allonge is considered an extension of the instrument itself. The purpose of an allonge in most loan transactions is to transfer the negotiable instrument to the lender if there has been an event of default and the lender is enforcing its rights under the credit agreement.
The Seller may use an Allonge to endorse a Note if the following conditions are met: The Allonge is permanently affixed to the Note. The Allonge references the Borrower's name, the property address and the original principal balance of the Note. The form of the Allonge, and its use, complies with all applicable laws.